When trying to get a loan or credit card, one of the first things that lenders look at is your credit report. If there were ever any judgments against you, they would be included in this report. Fortunately, if you have had a judgment taken off your record for whatever reason, it can still go on your credit report even if it has been removed from public records.
The good news is that it can also be removed from there! Read on to learn more about how to remove a judgment from your credit report and make sure you are not seen as risky by lenders when applying for loans.
What’s Inside a Credit Report?
Credit reports tell a lot about you as a consumer to potential creditors such as credit card companies or banks. This includes your loan history and any judgments against you that have been filed with the courts.
Several things included in your credit reports are:
- Payment history
- Credit types
- Credit usage
- Type of credit accounts open and closed
- Public records such as judgments or bankruptcies filed against you.
Why is a judgment on your report?
A judgment will appear on the credit reports if it has been reported by at least one of three major reporting bureaus: TransUnion, Equifax, or Experian. Judgments can negatively affect your credit score and can be seen as risky by lenders.
If you have had any judgments taken off your record, it is essential to know that they still go on the report even if removed from public records. However, some methods will allow you to remove them for good.
How To Remove Judgement From Credit Report
Lenders can update their records if the judgment is no longer valid.
You can submit a request to remove your public record from credit reports after it has been satisfied or released by the court, which means that you paid off what was owed. This will be reflected on Public Records and allow them to update their databases accordingly.
If filing bankruptcy, this will automatically remove the judgment from your credit report.
Suppose you are eligible to have a Chapter 13 bankruptcy. In that case, this allows for any remaining balances on judgments or liens against assets to be repaid over an extended period which can help ensure that they do not appear on future reports after being discharged by the courts.
However, if filing Chapter 13 bankruptcy, this will automatically remove the judgment from your credit report.
If you have paid in a full letter or court documents showing that any judgments on your reports are satisfied and figured out by the courts, then those entries can be removed off of public records after being satisfied. This information will need to be sent directly to all three major credit bureaus.
Set Aside A Judgement
Setting a judgement aside is a relatively simple process. But before you begin the process, make sure that it’s possible to do so with your judgment type and state. To remove a judgment from your credit report, you must file an appeal to the original creditor or collection agency.
When this is done correctly, it will result in having the judgement removed from your credit report and not showing up on future statements. However, if all of these fail, there’s always another way to help get rid of judgments permanently.
Eliminate Judgments from Credit Report Permanently
If you want to remove a judgment for good, then other steps can be taken. One of the most effective ways is filing bankruptcy and receiving an automatic stay on all collection activity, including judgments. This means they will no longer show up on your credit report or any other reports. Not only that, but bankruptcy will also help eliminate any current or future judgments you might have.
Judgements don’t tend to affect your credit the same way as delinquencies and bill defaults do because judgements become public records. In contrast, delinquent accounts are not reported publicly unless they reach a certain number of days past due (usually 180).
Court Application to Remove Default Judgement
If you’re unable to take the steps mentioned above, there’s also another option that can help. This involves filing a court application to remove default judgement with your local county clerk or tribunal office. To file this type of motion, you’ll need to make sure it includes all necessary information, including details about yourself and why the judgment should be removed.
It’s also essential to include all necessary contact information, especially for the other party involved in the case, as well as any attorney they might have used during proceedings. Finally, when you file your application with the court clerk or tribunal office, make sure that it is submitted by a person who has authority over filing documents on behalf of the debtor named within the application.
This is done by having them sign a power of attorney document, which gives you the authority to act on their behalf. Suppose your creditor isn’t removing this type of judgment from a credit report or any other report. In that case, they might also have no intention of following through with it.
When Does the Court Remove Default Judgement?
Courts can remove default judgment in certain situations, such as when the creditor fails to take action within a specific time frame or after an appropriate appeal has been filed. When filling out your application, you might also need to prove that the other party is aware of this type of court order and hasn’t done anything with it.
This includes sending them letters about filing a motion to set aside the judgment and making a post-judgment discovery request. In some cases, you might also need to prove that the other party has been properly served notice about this type of order and didn’t do anything with it.
If the court grants your application, all collection activity will be put on hold, and the default judgment will be removed from your credit report.
Removing a judgment from your credit report is possible if you follow the proper steps. However, if all of these fail, other ways can permanently help get rid of judgments by filing bankruptcy or applying for court-ordered relief with the local county clerk or tribunal office.
At The Oasis Firm, we help you fight for your rights when it comes to debt. We’re committed to assisting clients in getting the financial relief they deserve, which is why our lawyers will work tirelessly on their behalf until a favorable outcome is achieved.